The Strength of the Market is: Strong
The S&P 500 notched its best week since March and rose 1.65%, the Nasdaq Composite gained 3.04% and the Dow Jones added 0.38%. Most of the gains came on Wednesday and Thursday as bets increased that a U.S. debt ceiling deal could be reached - as soon as next week. However, on Friday afternoon, a deal being reached soon began to look doubtful. With uncertainty surrounding the debt ceiling, a period of stock market weakness might be on the way.
Economic reports from last week came back mostly negative: •Manufacturing (New York) - lower than expectation •Manufacturing (Philadelphia) - lower than expectation •Retail Sales - lower than expectation •Homebuilder Sentiment - higher than expectation •Existing Home Sales - lower than expectation •New Residential Construction - lower than expectation •Jobless Claims - lower than expectation This week, investors will look for guidance from economic reports like Manufacturing, Housing, National Economic Activity and Jobless Claims.